4.2 Specialist areas (level 3) Flashcards
1
Q
The specialists are
A
- experts who provide insight derived from the info that is given to them from level 4
- their insights create the building blocks to create value
2
Q
The specialist areas include:
A
- Financial planning and analysis
- Taxation
- Project management
- Project appraisal
3
Q
Financial planning and analysis (FP&A) involves:
A
- careful financial planning and cash flow management to ensure the org is profitable and continues to grow
- FP&A specialists perform budgeting, forecasting and data analysis to support the boards major org decisions
4
Q
The FP&A specialists use:
A
- both quantitative and qualitative analysis of all the operational aspects to evaluate progress being made towards goals and to map out future goals and plans
- they consider economic and bus trends, review past performance, and attempt to anticipate obstacles and potential problems, with an eye to forecast future results
5
Q
Taxation specialists play an important role by:
A
- by minimizing risk and creating value
- they do this by focusing on two main areas:
- Tax compliance
- Tax planning
6
Q
Tax compliance:
A
- follow current legislation, regulation and procedures to minimise risk
- eg: complete and file timely tax returns and any supplementary reports or calcs required
7
Q
Tax planning:
A
- focuses on ensuring the bus is working in the most tax efficient manner to reduce the tax paid and create value
8
Q
Tax specialists play an important role in:
A
- lowering the amount of taxable income
- reducing the tax rate
- allowing greater control of when taxes get paid
- maximising tax relief / tax credits available
9
Q
A project can be defined simply as:
A
- has a start, middle and end and will consume resources
- eg: development and launch of new products, expansion into new markets, investment in new equipment
10
Q
A project will:
A
- have a specific objective
- have a defined start and end date (timescale)
- consume resources (people, equipment, finance)
- be unique (one-time-only configuration)
- have cost constraints that must be clearly defined and understood to ensure project remains viable
- require organisation
11
Q
Project management is the
A
- integration of all aspects of a project, ensuring the proper knowledge and resources are available when and where needed and to ensure the expected outcome is achieved in a timely and cost effective manner
12
Q
Five stages of project management process:
A
- Initiation - when a need or objective is identified
- Planning - drawing up of detailed plans
- Executing - project team members will perform their tasks and project manager will provide leadership and coordination
- Controlling - progress, costs and performance will be tracked against the plan and corrective action if necessary will be taken
- Review and close - project will be signed off, team disbanded and review meeting held
13
Q
Project appraisal involves
A
- involves an assessment and evaluation of the decisions and potential outcomes of a particular project
- forms part of the first stage (initiation) of project management process
14
Q
One of the most important project decisions that will need to be appraised is:
A
- the capital investment decision, since the org may commit a substantial portion of its resources and this may be long term or irreversible
15
Q
Appraisal of a potential capital project includes:
A
- estimate the costs and benefits of the investment
- select an appraisal method and assess whether the investment is financially worthwhile
- decide whether or not to go ahead with the project
